Job insecurity

Abstract

Purpose – Organizational downsizing, right sizing, layoffs, and restructuring that attempt to reduce labour cost and increase competitiveness, have generated considerable feelings of job insecurity among today's employees. Conversely, the rapidity of change in the Middle Eastern region, coupled with the unpredictability of economic conditions, the inevitable need to survive and the ever‐lasting craving for organizational success merge to aggravate the adverse effects of job insecurity. The purpose of this paper is to study the relationship between job insecurity and powerlessness, management trust, peer trust and job satisfaction within Lebanon.

Design/methodology/approach – Employees working within medium‐sized organizations in Lebanon were surveyed to measure their perceptions of job insecurity, job satisfaction, powerlessness, and interpersonal trust. Statistical analyses were performed using Pearson correlation matrix and linear regression tests.

Findings – The study identified significant positive relationship between job insecurity and powerlessness, and negative relationships between job insecurity and management trust and job satisfaction. No significant relationship was found between job insecurity and peer trust.

Research limitations/implications – The study adds to the existing job insecurity literature by empirically testing the relationship between job insecurity and powerlessness, peer trust, management trust and job satisfaction within Lebanese organizations. The researchers hope that this study will assist managers in understanding the importance of earning their subordinates' trust and its implications on job insecurity which could also negatively affect job satisfaction. Also, the issue of powerlessness should be seriously considered by management since it triggers the feeling of job insecurity.

Originality/value – Western organizational behavior literature has given the topic of job insecurity significant attention. However, no scholarly research has yet examined the topic of job insecurity within the Middle East. This paper sheds light on important results regarding job insecurity and its consequences. Powerlessness predicts and aggravates job insecurity, and is affected by the nature of the job; trust in management has a negative effect on job insecurity, while peer trust has no influence. Also, job satisfaction is influenced by the perceptions of job insecurity.